---
kind: "section"
citation: "20 C.F.R. § 10.420"
title: "20"
number: "10.420"
heading: "How are cost-of-living adjustments applied?"
url: "https://uscodex.org/cfr/20/10.420"
---

# §10.420. How are cost-of-living adjustments applied?

- (a) In cases of disability, a beneficiary is eligible for cost-of-living adjustments under [5 U.S.C. 8146a](/usc/5/8146a.md) where injury-related disability began more than one year prior to the date the cost-of-living adjustment took effect. The employee's use of continuation of pay as provided by [5 U.S.C. 8118](/usc/5/8118.md), or of sick or annual leave, during any part of the period of disability does not affect the computation of the one-year period.
- (b) Where an injury does not result in disability but compensation is payable for permanent impairment of a covered member, organ or function of the body, a beneficiary is eligible for cost-of-living adjustments under [5 U.S.C. 8146a](/usc/5/8146a.md) where the award for such impairment began more than one year prior to the date the cost-of-living adjustment took effect.
- (c) In cases of recurrence of disability, where the pay rate for compensation purposes is the pay rate at the time disability recurs, a beneficiary is eligible for cost-of-living adjustments under [5 U.S.C. 8146a](/usc/5/8146a.md) where the effective date of that pay rate began more than one year prior to the date the cost-of-living adjustment took effect.
- (d) In cases of death, entitlement to cost-of-living adjustments under [5 U.S.C. 8146a](/usc/5/8146a.md) begins with the first such adjustment occurring more than one year after the date of death. However, if the death was preceded by a period of injury-related disability, compensation payable to the survivors will be increased by the same percentages as the cost-of-living adjustments paid or payable to the deceased employee for the period of disability, as well as by subsequent cost-of-living adjustments to which the survivors would otherwise be entitled.

## Notes

### Authority

Authority: 5 U.S.C. 301, 8102a, 8103, 8145 and 8149; 31 U.S.C. 3716 and 3717; Reorganization Plan No. 6 of 1950, 15 FR 3174, 64 Stat. 1263; Secretary of Labor's Order No. 10-2009, 74 FR 218; Pub. L. 117-263.

### Source

Source: 76 FR 37903, June 28, 2011, unless otherwise noted.